Knowing how to find real estate investor partners in your area can help you build up a portfolio fast. Even though investing with other people has disadvantages, there are a number of advantages as well.
For the sake of time, we won’t go into the pros/cons of investing with a partner, except to say you should partner with people on a house-by-house basis. Instead, let’s get into a few ways to find these partners. That way you can start getting results quickly.
How to Find Real Estate Investor Partners in Your Area #1: Networking
Don’t over-complicate this process. Your focus should be on meeting the right types of people. People who fit a few requirements:
- Have the money to invest in real estate
- Know how to manage real estate or a business
- Are interested in investing with a partner in real estate
That’s pretty much it.
So how do you meet those people? One way is to start attending local events where these types of people conjugate.
Your local Chamber of Commerce. Toastmasters groups. Gyms in wealthy parts of town. A BNI group. Fundraiser events for charity organizations.
Get yourself a business card and decent-looking website. It doesn’t have to be complex, just a few pages to talk about your real estate investing business and yourself. This isn’t necessary, but it will help you look more professional when you start talking to these potential real estate investment partners.
How to Find Equity Partners Method #2: Investment Clubs
Unless you’re in a very small town, you can probably find an investment club to join. Just like it sounds, the purpose of these clubs is to learn about investing and networking.
So why did I separate this from the last recommendation? Because this is it’s own animal. These clubs are full of people already investors or very interested in it. In a way, that makes them better equity partners than small business owners you meet at the Chamber of Commerce.
That’s good in a way. Working with an experienced investor gives you the opportunity to learn and grow. If you’re brand new to the field, you can learn the ropes from them.
The flip side is you won’t stand out. In a Toastmasters group, you may be the only real estate investor. But in an investor club, you’re a dime a dozen.
Here are a few ways to find a local club:
- Meetup.com (has groups of just about any interest/hobby you can think of)
- Search Google for a local Real Estate Investor Alliance (REIA)
- Just type in “real estate investment club” in Google
There may also be smaller, more private clubs that don’t advertise themselves. In that case, you need to learn about them through the grapevine of people you’re talking to. As you build new relationships with small business owners, real estate agents, etc. you will get hear about the groups.
Real Estate Partner Finding Method #3: Social Media
Social media has completely changed the game of how we interact with people.
It’s easier than ever to meet people interested in the same things you are. In this case, real estate investing.
Facebook groups have blown up over the last few years. They make it easy to reach people you aren’t connected with right now without seeming creepy or salesy.
LinkedIn groups aren’t quite as good, but the idea is there. The best thing about LinkedIn is people tend to act more professional on there. They may expect to build a new business partnership on LinkedIn before they expect it on Facebook.
Don’t discount other tools such as Twitter, but in general your best bets are probably Facebook and LinkedIn at this point.
This Forbes article talks about this a bit. Even though it is more focused on how startups can raise funding, you’re essentially a startup if you’re trying to raise money for real estate, correct? So a lot of the principles are the same.
The key to mastering social media is to build relationships on there. Comment on the posts of people you connect with. Ask questions. Hop on a Facebook video call with them so you can interact with them face to face.
You never know what may come from it.
Method #4: Real Estate Agents
It’s the job of real estate agents to know the market. All day long they’re talking to people buying and selling properties. This makes them a great resource to connect you with other investors.
Does that mean you should talk to the first agent you find? Sure – you can connect with them. But they may not be the best resource.
Instead, this post from Zillow highlights that a great way to start is by talking to brokers. They know who the best agents are for real estate investors and can point you in the right direction.
Another option is property managers. Their whole job is to work with landlords and investment companies! Even if the only investor they know is their client, that’s better than nothing.
In other words- talk to other people in the industry. They know each other. They know who is looking for investment partners or trying to sell a property. They can connect you with potential real estate investor partners, and before you know it you’re off to the races.
How to Find Real Estate Partners #5: Friends and Family
Last but not least, let’s talk about what salespeople call your “warm market.”
Most people already have dozens of family members, friends, neighbors and coworkers they talk to on a daily basis. There’s a good chance some of these folks can help you out!
Let me use a personal example. A friend of mine from high school’s Dad is a real estate investor. The last time I asked was years ago. But at the time, he had 26 properties and didn’t plan on slowing down.
There’s a good chance you are already connected to someone that invests in real estate. Or at least they have the money to do so and are interested in it. But you will never know if you’re connected unless you start asking around!
So get the word out. Start telling the people around you that you’re investing in real estate and looking for partners. You may be surprised at how well that works.
Knowing how to find real estate investor partners in your area can change your business and your life. But you can’t expect them to come to you. The busiest, most successful people in the world are too busy working on their own things to come find you! Instead, seek them out and build a relationship. Show them you’d be a good partner. People do business with folks they know, like and trust. Good luck and let us here at RentPost know how we can help you manage the properties you buy!